Citi analyst Asiya Merchant initiated coverage of Bel Fuse (NASDAQ: BELFB) with a Buy rating and a price target of $325, according to a press release statement. Shares of Bel Fuse closed at $272.58 prior to the announcement.

Merchant said the $325 target represents approximately 19% estimated total return, noting that the company has shifted from a decentralized, product-oriented organization into a power, connectivity, and defense electronics supplier with exposure to aerospace, defense, and AI-related infrastructure.

The analyst noted that shares trade at 21x EV/EBITDA on a next-twelve-months basis, or 27x price-to-earnings and 4.6x EV/sales, and have seen multiple expansion since mid-last year, driven by a profitability focus, end market refinement, and acquisitions.